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PUNJAB CO-OPERATIVE LAND MORTGAGE BANKS (HARYANA AMENDMENT) ACT, 1973

PUNJAB CO-OPERATIVE LAND MORTGAGE BANKS (HARYANA AMENDMENT) ACT, 1973

PUNJAB CO-OPERATIVE LAND MORTGAGE BANKS (HARYANA AMENDMENT) ACT, 1973

Preamble - PUNJAB CO-OPERATIVE LAND MORTGAGE BANKS (HARYANA AMENDMENT) ACT, 1973

THE PUNJAB CO-OPERATIVE LAND MORTGAGE BANKS (HARYANA AMENDMENT) ACT, 1973

[Act No. 16 of 1973]

[25th April, 1973]

PREAMBLE

An Act to amend the Punjab Co-operative Land Mortgage Banks Act, 1957.

Be it enacted by the Legislature of the State of Haryana in the Twenty-fourth Year of the Republic of India as follows:--

Section 1 - Short title

This Act may be called the Punjab Co-operative Land Mortgage short title. Banks (Haryana Amendment) Act, 1973.

Section 2 - Amendment of section 1 of Punjab Act 26 of 1957

In sub-section (1) of Section 1 of the Punjab Co-operative Land Mortgage Banks Act, 1957 (hereinafter referred to as the principal Act), for the word "Mortgage", the word "Development" shall be substituted.

Section 3 - Amendment of section 2 of Punjab Act 26 of 1957

In section 2 of the principal Act,--

(i)       in clause (b), for the words "Mortgage Bank", the words "Development Bank" shall be substituted;

 

(ii)      for clause (d), the following clause shall be substituted, namely:--

(d) "Development Bank" means a Primary Land Development Bank or State Bank registered or deemed to be registered under the Punjab Co-operative Societies Act, 1961, for advancing long-term loans for the following purposes, namely:--

(i)       land improvement and productive purposes;

 

(ii)      erection, rebuilding or repairing of houses for agricultural purposes;

 

(iii)     purchase or acquisition of title to agricultural lands by tenants or agriculturists under the Haryana Ceiling on Land Holdings Act, 1972, or any corresponding law for the time being in force;

 

(iv)    liquidation of debts incurred by mortgaging agricultural lands;

 

(v)      development of animal husbandry.

Explanation.--For the purposes of this Act,--

(1)     long-term loan means a loan for a duration of five years or more.

 

(2)     land improvement and productive purposes mean any work, construction or activity which adds to the productivity of the land and, in particular, includes the following, that is to say?

 

(a)      construction and repair of wells, including tubewells, tanks and other works for the storage, supply or distribution of water for the purpose of agriculture, or for the use of men and cattle employed in agriculture;

 

(b)      renewal or reconstruction of any of the foregoing works, or alterations therein, or additions thereto;

 

(c)      preparation of land for irrigation;

 

(d)      drainage, reclamation from rivers or other waters, or protection from floods or from erosion or other damage by water, of land used for agricultural purposes, or waste land which is culturable;

 

(e)      bunding and similar improvements;

 

(f)       reclamation, clearance and enclosure or permanent improvement of land for agricultural purposes;

 

(g)      horticulture;

 

(h)     purchase of persian wheels, oil-engines, pumping sets and electrical motors for any of the purposes mentioned herein;

 

(i)       purchase of tractors, implements or other agricultural machinery;

 

(j)       increase of the productive capacity of land by addition to it of special variety of soil;

 

(k)      construction of permanent farm-houses, cattle-sheds and sheds for processing of agricultural produce at any stage;

 

(l)       purchase of machinery for crushing sugarcane, manufacturing (Agur or khandsari or sugar);

 

(m)    such other purposes as the Board may declare to be land improvement or productive purpose for the purposes of this clause.";

(iii) in clause (f), for the words "Mortgage Bank" occurring twice, the words "Development Bank" shall be substituted; and

(iv) in clause (h), for the words "Mortgage Bank", the words "Development Bank" shall be substituted.

Section 4 - Amendment of section 4 of Punjab Act 26 of 1957

In section 4 of the principal Act, for the words "Mortgage Banks", the words "Development Banks" shall be substituted.

Section 5 - Amendment of section 7 of Punjab Act 26 of 1957

In section 7 of the principal Act, for the words "Mortgage Banks", the words "Development Banks" shall be substituted.

Section 6 - Amendment of section 9 of Punjab Act 26 of 1957

In section 9 of the principal Act, for the words "Mortgage Banks", the words "Development Banks" shall be substituted.

Section 7 - Insertion of Chapter III-A IN Punjab Act 26 of 1957

After Chapter III, the following new Chapter shall be inserted, namely:--

"CHAPTER III-A

ADVANCEMENT OF LOANS AND RECOVERY THERETO

11A. Power of Land Development Banks to advance loans and to hold lands.--

Subject to the provisions of this Act and the rules made thereunder, it shall be competent for the Land Development Banks to advance loans for the purposes referred to in clause (d) of section 2 and to hold lands transferred to them under the provisions of this Act.

11B. Power of Land Development Banks where mortgaged property is destroyed or security becomes insufficient.--

Where any property mortgaged to a Land Development Bank is wholly or partially destroyed, or for any reason the security is rendered insufficient and the mortgagor, having been given a reasonable opportunity by the Bank to provide further security in order to make the deficiency good, or to repay such portion of the loan as may be determined by the Bank, has failed to provide such security or to repay such portion of the loan, the whole of the loan shall be deemed to fall due at once, and the Bank shall be entitled to take action against the mortgagor under section 12 or section 15 for the recovery thereof.

Explanation.--Security shall be deemed to be insufficient within the meaning of this section, unless the value of the mortgaged property, including in provements made thereon, exceeds the amounts for the time being due on the mortgage by such proportion as may be specified in the rules or regulations made under this Act or the bye-laws of the Land Development Bank.

11C. Recovery of loans by Land Development Banks.--

(1)     When a loan advanced by a Land Development Bank is not utilised for the purpose for which it was advanced, the Bank may, irrespective to the period for which the loan was advanced, recall and recover the entire loan along with interest and costs and charges, if any, incurred in advancing and effecting recovery, after giving the debtor an opportunity of being heard.

 

(2)     All loans granted by the Land Development Banks, all interests, if any, chargeable thereon, and costs, if any, incurred in making the same, shall, when they become due, be recoverable by the Land Development Bank concerned.

Explanation.--For the purposes of sub-section (1), whether the loan has or has not been utilised for the purpose for which it was advanced, the decision of the committee shall be final.

11D. Recovery of loans on certificate by Registrar.--

(1)     Notwithstanding anything contained in any other law for the time being in force, on an application made by a Land Development Bank for the recovery of arrears of any sum advanced by it to any of its members and on its furnishing a statement of account in respect of the arrears, the Registrar may, after making such enquiries as he deems fit, grant a certificate for the recovery of the amount stated therein to be due as arrears.

 

(2)     A certificate by the Registrar under sub-section (1) shall be final and conclusive as to the arrears due. The arrears stated to be due therein shall be recoverable according to the law for the time being in force for the recovery of arrears of land revenue.

 

(3)     It shall be competent for the Registrar or a person authorised by him to direct conditional attachment of the property of the mortgagor until the arrears due to the Land Development Bank together with interest and any incidental charges incurred in the recovery of such arrears, are paid or security for payment of such arrears is furnished to the satisfaction of the Registrar and the provisions of section 65 of the Punjab Co-operative Societies Act, 1961, shall apply mutatis mutandis to conditional attachment of any property made or to be made under this section.

11E. Collector to make recoveries during certain period.--

(1)     During such period as the State Government may, by general or special order notify in the official Gazette, it shall be competent for the Collector, or application being made to him in this behalf by the Land Development Bank, to recover all sums, including the costs of such recovery, which he may find due to the Land Development Bank, after making such enquiry as he may deem fit.

 

(2)     Any amount due to a Land Development Bank shall be recoverable by the Collector, or any officer specially authorised by the Collector in this behalf, in all or any of the following modes, namely:--

(a)      from the borrower, as if these were arrears of land revenue due by him;

 

(b)      out of the land for the benefit of which the loan has been granted as if these were arrears of land revenue due in respect of that land;

 

(c)      from a surety, if any, as if these were arrears of land revenue due by him; and

 

(d)      out of the property comprised in the collateral security, if any, according to the procedure for the realisation of land revenue by the sale of immovable property other than the land on which land holding tax is due.".

Section 8 - Amendment of section 12 of Punjab Act 26 of 1957

In sub-section (1) of section 12 of the principal Act,--

(a)      for the words "two consecutive instalments", the words "an instalment" shall be substituted; and

 

(b)      for the word "instalments" occurring twice, the word "instalment" shall be substituted.

Section 9 - Amendment of section 14 of Punjab Act 26 of 1957

In sub-section (2) of section 14 of the principal Act, for the words "one anna", the words "ten paise" shall be substituted.

Section 10 - Amendment of section 15 of Punjab Act 26 of 1957

In clause (c) of sub-section (2) of section 15 of the principal Act, for the words "six months", the words "thirty days" shall be substituted.

Section 11 - Amendment of section 21 of Punjab Act 26 of 1957

In section 21 of the principal Act and the marginal heading thereto, for the words "Mortgage Bank", the words "Development Bank" shall be substituted.

Section 12 - Amendment of section 22 of Punjab Act 26 of 1957

In sub-section (1) of section 22 of the principal Act, for the words "Mortgage Bank", the words "Development Bank" shall be substituted.

Section 13 - Amendment of section 23 of Punjab Act 26 of 1957

In section 23 of the principal Act, for the words "Mortgage Bank," the words "Development Bank" shall be substituted.

Section 14 - Amendment of section 25 of Punjab Act 26 of 1957

In section 25 of the principal Act and the marginal heading thereto, for the words "Mortgage Bank" wherever occurring, the words "Development Bank" shall be substituted.

Section 15 - Amendment of section 26 of Punjab Act 26 of 1957

In section 26 of the principal Act, for the words "Mortgage Bank" wherever occurring, the words "Development Bank" shall be substituted.

Section 16 - Amendment of section 27 of Punjab Act 26 of 1957

In section 27 of the principal Act, for the words "Mortgage Bank" the words "Development Bank" shall be substituted.

Section 17 - Amendment of section 28 of Punjab Act 26 of 1957

In section 28 of the principal Act, for the words "Mortgage Bank" occurring twice, the words "Development Bank" shall be substituted.

Section 18 - Amendment of section 29 of Punjab Act 26 of 1957

In section 29 of the principal Act, for the words "Mortgage Bank", the words "Development Bank" shall be substituted.

Section 19 - Amendment of section 30 of Punjab Act 26 of 1957

In section 30 of the principal Act and the marginal heading thereto, for the words "Mortgage Bank" wherever occurring, the words "Development Bank" shall be substituted.

Section 20 - Amendment of section 31 of Punjab Act 26 of 1957

In sub-section (1) of section 31 of the principal Act, for the words and figure "the Punjab Co-operative Societies Act, 1954", the words and figure "the Punjab Co-operative Societies Act, 1961" shall be substituted.

Section 21 - Amendment of section 32 of Punjab Act 26 of 1957

In section 32 of the principal Act,--

(a)      in the marginal heading, for the words "Mortgage Bank", the words "Development Bank" shall be substituted; and

 

(b)      in sub-section (1), for the words "Mortgage Bank", the words "Development Bank" shall be substituted.

Section 22 - Amendment of section 33 of Punjab Act 26 of 1957

In section 33 of the principal Act and the marginal heading thereto, for the words "Mortgage Bank" wherever occurring, the words "Development Bank" shall be substituted.

Section 23 - Amendment of section 34 of Punjab Act 26 of 1957

In section 34 of the principal Act, for the words "Mortgage Bank" the words "Development Bank" shall be substituted.

Section 24 - Amendment of section 35 of Punjab Act 26 of 1957

In section 35 of the principal Act, for the words "Mortgage Bank", the words "Development Bank" shall be substituted.

Section 25 - Amendment of section 37 of Punjab Act 26 of 1957

In section 37 of the principal Act and the marginal heading thereto, for the words "Mortgage Bank" and "Mortgage Banks", the words "Development Bank" and "Development Banks" respectively, shall be substituted.

Section 26 - Insertion of sections 38A to 38C in Punjab Act 26 of 1957

After section 38 of the principal Act, the following new sections shall be inserted, namely:--

"38A. Provision for guarantee funds to meet certain losses.--

(1)     It shall be competent for the State Government to constitute one or more guarantee funds on such terms and conditions, as it may deem fit, for the purpose of meeting losses that might arise as a result of loans being made by the Land Development Banks on titles to immovable property subsequently found to be defective or for any other purpose under this Act, for which in the opinion of the State Government, it is necessary to provide for or create a separate guarantee fund.

 

(2)     The State Bank and the Primary Land Development Banks shall contribute to such funds at such rate as may be prescribed, and the constitution, maintenance and utilisation of such funds shall be governed by such rules as may be made by the State Government in this behalf.

38B. Employees of Land Development Bonks and Government servants to be public servants.--

Every employee of a Land Development Bank or a Government servant engaged in the recovery of loans advanced by the Land Development Bank shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.

38C. Construction of references to Land Mortgage Banks in existing law and instruments or document.--

(1)     Any references to the expression "Land Mortgage Bank" with its grammatical variations and cognate expressions, if any, in an existing law or any instrument or document shall, unless the context otherwise requires, be construed as if reference therein to that expression were references to the expression "Land Development Bank" with the corresponding grammatical variations and cognate expressions, if any.

 

(2)     With effect from the commencement of the Punjab Co-operative Land Mortgage Banks (Haryana Amendment) Act, 1973, and until such name or names of the Land Mortgage Banks and the societies functioning in the State at the commencement of that Act are changed into Land Development Banks, all acts done by them or mortgages and other documents executed by them, or in their favour and all suits and other proceedings filed by or against them shall be deemed to have been done, executed or filed, as the case may be, by or against them as Land Development Banks.

Explanation.--For the purposes of this section "existing law" means any enactment of a Legislature or other competent authority in relation to matters specified in Lists II and III in the Seventh Schedule to the Constitution of India in force in any part of the State of Haryana immediately before the commencement of the Punjab Co-operative Land Mortgage Banks (Haryana Amendment) Act, 1973, and includes any rule, bye-law, regulation, order, notification, scheme, form or other instrument having the force of law made, prescribed or issued under any such enactment.".

Section 27 - Amendment of section 39 of Punjab Act 26 of 1957

After clause (viii) of sub-section (2) of section 39 of the principal Act, the following clause shall be inserted, namely:--

"(ix) all matters in respect of which rules are expressly required or allowed by this Act to be made.".

Section 28 - Amendment of section 40 of Punjab Act 26 of 1957

In section 40 of the principal Act,--

(a)      for the words and figure "the Punjab Co-operative Societies Act, 1954", the words and figure "the Punjab Co-operative Societies Act, 1961" shall be substituted; and

 

(b)      for the words "Mortgage Banks" wherever occurring, the words "Development Banks" shall be substituted.

Section 29 - Amendment of section 41 of Punjab Act 26 of 1957

In section 41 of the principal Act and the marginal heading thereto, for the words "Mortgage Banks", the words "Development Banks" shall be substituted.